When an Additional Unit of Output Is Produced, the Extra

question 17

Multiple Choice

When an additional unit of output is produced, the extra cost to society is the

• A)average total cost.
• B)marginal social cost.
• C)marginal private cost.
• D)marginal external cost.
• E)marginal damage.

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Definitions:

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its current liabilities with its quick assets (cash, marketable securities, and receivables).

Working Capital

Current assets less current liabilities.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its short-term assets.

Acid-Test Ratio

A financial ratio indicating a firm's capacity to settle short-term debts without having to sell its stock.